Aidoo confirmed that Cocobod will finance the season locally, stating, “We are not taking funds from cocoa traders. The money will come locally. We are going to be self-financing.” This shift aims to save the regulator $150 million in interest costs previously paid on syndicated loans, which last year carried a record 8% interest rate.

Since the 1992/93 season, Ghana has relied on annual syndicated loans for cocoa bean purchases. However, due to challenges including harsh weather from El Nino, rampant smuggling, and swollen shoot disease, the country faced one of its poorest harvests in a decade during the 2023/2024 season.

The new season’s early start is a response to increased smuggling to neighboring countries and aims to counteract the lower-than-expected output. Despite the reduction in target, Ghanaian cocoa farmers are hopeful for a recovery in the 2024/25 season due to improved weather conditions and rehabilitated farms. Aidoo noted that, if necessary, a combination of self-financing and domestic funding will be utilized.

Motorcycle taxis, known locally as boda-bodas, have surged in number across East Africa, but nowhere more dramatically than in Kampala. With an estimated 350,000 boda-bodas operating in a city of 3 million, these vehicles fill a crucial transport gap in the absence of a mass transit system and amid high unemployment.

Boda-boda drivers, who come from various parts of Uganda, often have no other job prospects. “We just do this because we have nothing else,” says Zubairi Idi Nyakuni, a driver who, despite holding advanced degrees, struggles with job scarcity.

The boda-boda sector is largely unregulated, and attempts to control it have faced resistance from drivers and frustration from city authorities. The influx of young, unemployed men seeking income has made it difficult for the government to enforce regulations without provoking unrest.

Charles M. Mpagi of Tugende, a company that finances boda-boda purchases, notes the lack of alternative opportunities for Uganda’s youth, who make up about 76% of the population. Unemployment has risen from 9% in 2019 to 12% in 2021, with youth unemployment even higher.

President Yoweri Museveni has historically supported boda-boda drivers as political allies, leveraging their visibility and influence. The term “boda-boda” originated from the 1970s when drivers transported smugglers across borders.

Today, boda-bodas are essential for daily tasks, from school runs to medical emergencies. However, they are also linked to crime and accidents. The number of fatal motorcycle accidents in Uganda rose from 621 in 2014 to 1,404 in 2021.

Despite ongoing efforts to regulate the sector, enforcement is challenging due to the sheer number of boda-bodas and their drivers’ non-compliance with traffic laws. Efforts to establish official stands and improve road safety have had limited success.

Recent policy changes, including a reduction in the licensing fee from nearly $100 to about $35, aim to make it easier to join the industry. With new motorcycles costing around $1,500, many drivers acquire them on credit or through bulk purchase schemes. The high cost and pressure to maintain their bikes create financial strain, often leaving drivers like Innocent Awita struggling to make ends meet.

Awita, who dropped out of school in 2008, faces daily pressure to pay for his bike and cover operational costs. “Sometimes I work for days without earning enough, but if I get something, it can save my life,” he says.

In Kampala, boda-bodas are both a lifeline and a symbol of the city’s complex challenges, embodying the intersection of economic necessity and urban disorder.

This follows allegations made by Aliko Dangote, President of the Dangote Group, who accused certain “mafias” of trying to sabotage his $20 billion refinery project. In an interview with the Financial Times, Obasanjo suggested that if the refinery succeeds, it could boost investment from both Nigerians and foreigners.

Officials from the Dangote Group recently expressed their frustrations, claiming that international oil companies obstruct the refinery’s operations by either refusing to sell crude oil or charging up to $4 above the standard price. They also accused the Nigerian Midstream and Downstream Regulatory Authority of intentionally issuing licenses to individuals for importing contaminated fuel. In response, the regulator denied these claims, saying that Dangote’s diesel was inferior compared to imported ones.

The new directive came five months after Kenyan clearing and forwarding agents moved to court to compel South Sudan authorities to suspend introduction of a second cargo tracking seal.

Now, Juba has directed East African countries to comply with immediate effect.

In a notice issued on August 13, Dr Daniel Kon Ater, the South Sudan Revenue Authority (SSRA) Commissioner for Corporate Services informed all stakeholders in Uganda, Kenya and Tanzania to tag goods destined to their country, alongside the requisite Electronic Cargo Tracking Note (ECTN).

SSRA said all taxpayers, clearing and forwarding agents and transporters, including non-governmental organisations involved in moving cargo destined to and from South Sudan, should attach South Sudan regionally recognised electronic cargo tracking seal.

Speaking during the Kenya Private Sector Alliance (Kepsa)-EAC Secretary-General Roundtable in Nairobi on Wednesday, EAC boss Veronica Nduva said the stays were distorting trade within the region.

The existence of numerous stays of application and countries’ duty remission is an impediment to the intra-EAC trade, she said, as the finished products that benefit from these measures cannot access the regional market at preferential tariff treatment.

This is due to the fact that all finished products that benefit from a country’s duty remission once sold in the EAC Customs Territory attract duties, levies and other charges provided in the EAC Common External Tariff (CET).

“Partner states are still requesting stays of application. This has meant that we have a distortion to the common instruments (of the CET) that were adopted by all partner states,” Ms Nduva said.

Dr. Magoola, owner of DEI Biopharma Limited, has filed a court petition in what is seen as an attempt to evade his financial obligations. He is contesting Shs 82.2 billion and $43.2 million in outstanding loans, arguing that these amounts are inflated and unfair.

Dr. Magoola, who runs DEI Industries International Limited and DEI Biopharma Limited (formerly DEI Natural Products International), is calling for a comprehensive account and audit of their loan and current accounts with the bank. He seeks an order for the banks to adjust any unlawful debits from their accounts and refund more than Shs 47.6 billion that he claims was wrongly charged.

The loans in question were reportedly taken to finance various projects, including a medical plant in Matugga, Wakiso District. This plant, which gained prominence when President Museveni inaugurated it after claims it might produce a COVID-19 cure, is now at the center of the dispute.

Before the Commercial Court, Dr. Magoola has challenged the legality of the loans, seeking an audit to verify the actual debt and to address terms, consolidations, and restructurings of the loans.

Dr. Magoola and his companies are requesting that the court direct the bank to credit their accounts for any amounts deemed unlawfully debited and to rectify any discrepancies.

The banks, however, maintain that Dr. Magoola obtained several credit facilities from September 2016 to December 2019 for the completion of a factory in Kiryamuli, Wakiso District, and for wheat importation. They argue that these facilities were consolidated in June 2021 into a single loan with an interest rate of 17 percent per annum and a 12-month moratorium.

By July 25, 2022, at the end of the moratorium, the outstanding amount was Shs 64.7 billion. DEI Industries International Limited was expected to begin monthly payments of Shs 1.449 billion but only made partial payments of Shs 129.6 billion on July 29, 2022, and Shs 58,822.23 on October 10, 2022, over the following 18 months. The banks allege that due to missed payments, the loan continued to accrue interest and default charges.

Dr. Magoola’s case was filed on August 2, shortly after the government provided Shs 578.4 billion to DEI Biopharma Limited to prevent the auction of its assets. A letter from the Solicitor General on May 31, 2024, indicated that these funds were intended to help DEI Biopharma and to be factored into the valuation of the government’s equity stake in the company.

Finance Minister Matia Kasaija, in a letter to Equity Bank’s Managing Director on September 28, 2023, reaffirmed the government’s commitment to support the bank and noted that part of the bailout was meant to offset the company’s loan obligations. However, it is alleged that Dr. Magoola deposited the funds in a different bank rather than settling the debt with Equity Bank.

Despite numerous requests from the banks for repayment, Dr. Magoola and his companies have yet to make payments. The banks’ documents reveal that property owned by Dr. Magoola, including his residential home in Muyenga, was advertised for sale in September 2023 to recover the outstanding debt.

In June 2024, Dr. Magoola requested a meeting to negotiate the loan terms. During this meeting, he acknowledged the banks’ support but proposed to repay only the principal amounts without any interest or penalties. The banks rejected this offer.

Parliament’s approval of the Shs 578 billion bailout for DEI Biopharma Limited in May has been a point of contention, with ongoing debate among legislators.

A sign displayed on the headrest of a driver’s seat reads, “We, as Nairobi online drivers, wish to notify the public that due to the high cost of living, we will not be able to operate under the current rates of Uber, Faras, and Bolt.”

The sign details new fares that drivers believe are necessary for them to remain operational. They are urging ride-hailing companies to reconsider their pricing, starting with increasing the minimum fare from $1.40 (KES 180) to $2.33 (KES 300).

Dennis Nyariki, deputy chairman of the Organisation of Online Drivers Kenya (OOD), explained, “With a minimum fare of KES 300, our calculations cover a litre of fuel plus an additional $0.78 (KES 100) for the driver’s expenses, such as airtime and maintenance. For trips exceeding KES 300, which cover more than 3 km, it’s fair for the driver to multiply the app’s fare by 1.5.”

The drivers have set new fares for airport and railway station pickups and drop-offs, ranging from $7.75 (KES 1,000) to $38.76 (KES 5,000), which are pricier than a train ticket from Nairobi to Mombasa and nearly half the cost of a flight to the coastal city.

According to an analysis by AA Kenya, a mobility solutions company, incorporating maintenance costs suggests that ride-hailing apps should charge at least $0.26 (KES 33) per kilometer.

Drivers are advocating for fare increases to improve their earnings, partly due to the rising cost of living. However, ride-hailing apps are hesitant to raise prices as they aim to keep fares affordable for price-sensitive customers.

Economic challenges, including job cuts, pay freezes, and high inflation, have led to reduced discretionary spending, impacting leisure travel and potentially decreasing ride frequency.

Customers have reported harassment and even assault from drivers when refusing to pay the unofficial rates. In response, the ride-hailing companies have agreed to meet with drivers’ associations to address these issues.

“We understand and empathize with the concerns raised by drivers. However, we are aware that some drivers have taken independent actions to increase fares, leading to inconsistent pricing for customers. We urge drivers to refrain from setting their own fares until this industry matter is resolved,” Bolt said in a statement to TechCabal.

Bolt also mentioned that they are working on a solution to balance drivers’ economic needs with customer affordability and service quality. Industry negotiations mediated by the Ministry of Transport and the National Transport and Safety Authority (NTSA) are expected.

Uber added, “Requesting additional payment beyond what is displayed on the app violates our Community Guidelines. Actions may be taken, ranging from holding the driver’s account to potentially denying further access to the app.”

Past negotiations on this issue have often been unproductive, leading to frequent driver strikes. While fare pricing is a major concern, drivers are also seeking a role in determining and reviewing trip fares.

If the upcoming meetings fail to resolve the conflict, unions have indicated they will continue to enforce their new rates. This situation underscores a challenging moment where ride-hailing apps, once eager to attract drivers, might consider severing ties with them.

Nicolas Guibert, a director at Mobius, stated, “On August 14, Mobius accepted a bid to acquire 100% of its shares from an undisclosed buyer. Both parties are aiming to finalize the transaction within the next 30 days.”

As a result of the acquisition offer, Mobius has postponed a creditor meeting originally scheduled for Thursday to facilitate the ongoing negotiations.

The potential buyer may be interested in utilizing Mobius’s Nairobi assembly plant either to manufacture their own models or to continue producing Mobius vehicles, which are designed for small and medium-sized enterprises (SMEs) in sectors such as infrastructure, agribusiness, and supply chains operating in remote areas.

On August 9, Business Daily reported that two dealers were exploring the possibility of acquiring the financially troubled car manufacturer, with hopes of revitalizing the brand.

This development follows a visit to the Mobius plant by Hassan Abubakar, Permanent Secretary for Trade and Industry, along with representatives from the Kenya Association of Manufacturers (KAM), to discuss potential rescue strategies.

Mobius’s production facility is equipped to handle vehicle frame fabrication, anti-corrosion treatment, general assembly, painting, quality testing, and final inspection, and also includes a research and development unit.

The company has a distributorship agreement with Chinese automaker BAIC, which played a key role in launching the Mobius III, an upgraded version of its earlier models, Mobius I and Mobius II.

Founded in 2009 by British entrepreneur Joel Jackson while in Kenya, Mobius introduced a cost-effective SUV model in 2014 specifically designed for African roads. The initial model was priced at $10,000 (KES 1.3 million), significantly lower than typical SUV prices in Kenya. The Mobius III was retailing at $43,000, compared to over $65,000 for imported and locally assembled models like the Toyota Land Cruiser Prado, Land Rover Defender, and Jeep Wrangler.